Invest in mutual funds? You can now avail HDFC Bank loans against it
HDFC Bank launched Digital Loans against Mutual Funds (LAMF) scheme today in partnership with transfer agent CAMS. Customers can now pledge mutual fund assets online and get overdraft limit set in their account within 3 minutes, HDFC Bank said in a statement
In a first such initiative in India, HDFC Bank launched Digital Loans against Mutual Funds (LAMF) scheme today in partnership with transfer agent CAMS. Customers can now pledge mutual fund assets online and get overdraft limit set in their account within 3 minutes, HDFC Bank said in a statement. With this product, customers can leverage their mutual fund (MFs) portfolio to avail funds for any contingencies or emergencies without liquidating their investments or stopping their regular investment plans/SIPs.
HDFC Bank customers can avail Digital LAMF in 3 easy steps on Net Banking:
1. Log on to myCAMS via HDFC Bank website hdfcbank.com and select which mutual funds the customer would like to pledge from their portfolio.
2. Click on loan terms and conditions
3. Input one-time password (OTP) and overdraft will be ready to use in their account
The bank said it has collaborated with CAMS to create a seamless customer experience. It is open to all HDFC Bank customers holding assets in at least one of the ten mutual fund houses registered with the CAMS. The bank has now automated the entire process for ‘Digital Loans against Mutual Funds.’ Until now, a customer has to wait for 5-6 days to avail a loan against mutual funds. Even redemption of MFs takes couple of days for the funds to be transferred to the customers' account.
Watch this HDFC Bank demo video here:
“Digital Loans against Mutual Fund is an industry first innovation and takes customer convenience, flexibility and access to greater heights. In emergencies, customers will not be forced to liquidate assets at less than optimal market conditions. They can instead design their own loan to tide over the cash crunch," said Arvind Kapil, Group Head, Unsecured Loans, Home, and Mortgage Loans of HDFC Bank.
With Digital LAMF, customers can design their loans against mutual fund, choosing which assets from their portfolio they would like to pledge, calculate their overdraft limit eligibility against mutual fund, open a current account online instantly and get the money into the account; all in a matter of minutes, the statement said.
Key benefits of Digital LAMF:
· Instant availability of money in account within minutes.
· Available against both Debt and Equity Mutual Funds
· Customer retains mutual fund portfolio without liquidation
· First-time borrowers without credit history can access loans
· Interest applied only on amount utilised
· Available across the country on HDFC Bank website
· New Loans and Enhancements can be done online